Baker Tilly said on Monday that it will merge with Seattle’s Moss Adams in a $7 billion deal that will create the sixth-largest advisory CPA firm in the United States.
The merger is expected to be finalized in early June, marking a significant advancement in the middle market for both firms, which offer a range of accounting, tax, and consulting services.
“This merger is a strategic bet on the future of professional services — scale is no longer optional, it’s survival. Mid-sized firms either scale nationally or risk becoming obsolete,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.
The deal comes at a challenging time for mergers and acquisitions in the U.S., with dealmakers adopting a “wait-and-see” approach amid uncertainty surrounding President Donald Trump’s tariff policies.
“In a cautious M&A environment defined by tighter credit and economic uncertainty, this merger reflects a strategic, long-term view,” Schulman added.
The combined entity will continue to operate under the Baker Tilly name, with the audit businesses combining as Baker Tilly US, LLP.
The firms’ business advisory, tax and other services will combine under Baker Tilly Advisory Group, LP. Both the entities will remain in partnership.
Private equity firm Hellman & Friedman, an existing investor in Baker Tilly, will make a strategic investment in the combined entity, along with Valeas Capital Partners.
“The resources, geographic reach, and go-to-market strength of the combined firm magnifies opportunities for our people to grow, collaborate and innovate,” said Eric Miles, Chairman and CEO of Moss Adams.
Baker Tilly’s CEO, Jeff Ferro, will lead the merged firm as chief executive until his retirement, after which Eric Miles will assume the role on January 1, 2026.
Ferro will remain a director on Baker Tilly’s board after passing the mantle.
Simpson Thacher & Bartlett LLP and Vedder Price PC served as the legal advisors to Baker Tilly on the deal while Deutsche Bank Securities served as financial advisor.
The Wall Street Journal reported the deal earlier in the day.
Source: Reuters.com